Directorate of Enforcement Vs. Subhash Muljimal Gandhi ( Delhi HC)- that interest at the rate of 6% per annum under Rule 8 could have been awarded to the respondent on the seized Indian currency only. The learned Single Judge has however applying the said Rule also awarded interest on the seized foreign currency and which cannot be sustained. The Division Bench of this Court in Neeraj Kumar (supra) has held that a writ remedy cannot be availed to circumvent the non grant of interest by the authority, Commissioner, Central Excise in that case. It was also observed that in any event a writ petition for award of interest simplicitor was not maintainable in view of the availability of alternate remedy by way of appeal or by way of a suit. . Else the position is squarely covered by Suganmal and M/s Orient Enterprise (supra) and this writ petition in the nature of enforcement of a civil liability that is claim for interest in the nature of compensation for wrongful retention of money is not maintainable. It is not as if payment of interest under Rule 8 (ii) was mandatory (as under Rule 8(i)) and which could be enforced by way of a writ petition. The impugned judgment awarding interest under Rule 8(i) qua Indian currency also can thus not be sustained.
HIGH COURT OF DELHI
Date of decision: 1st FEBRUARY, 2012
+ LPA 669/2011
DIRECTORATE OF ENFORCEMENT
Versus
SUBHASH MULJIMAL GANDHI
JUDGEMENT
